Gold Price Analysis: XAU/USD rebounds $20 to $1830 as DXY drops sharply

A reversal of the US dollar across the board triggered a rally in XAU/USD.
Gold jumped $20 from the low, hitting a fresh daily high at $1830.

Matías Salord FXStreet

Metals printed fresh daily highs, offering a complete differed scenario from hours ago. Gold bottomed earlier at $1810 and when it seemed ready to extend the slide, bounced sharply rising to $1830, hitting a fresh daily high.

Near the end of the week, XAU/USD is hovering around $1825, flat for the day and about $10 above the level it had a week ago. Still, some sharp moves seem likely considering that volatility in the forex market surged.

A decline of the US dollar triggered the rally in gold. The DXY dropped from multi-day highs above 90.70 to 90.39 in a few hours. At the same time, US yields move off highs adding support to metals. XAG/USD broke above $27.20 and reached at 27.42 a two day high.

The week is about to end on a soft tone for the US dollar ahead of a long weekend due to a holiday in Monday in the US. Also, the Spring Festival in Asia could keep volume depressed at the beginning of next week.

Technical levels

XAU/USD

Overview
Today last price	1826.78
Today Daily Change	0.38
Today Daily Change %	0.02
Today daily open	1826.4

Trends
Daily SMA20	1839.82
Daily SMA50	1859.56
Daily SMA100	1869.72
Daily SMA200	1856.77

Levels
Previous Daily High	1847.64
Previous Daily Low	1821.22
Previous Weekly High	1871.9
Previous Weekly Low	1785.02
Previous Monthly High	1959.42
Previous Monthly Low	1802.8
Daily Fibonacci 38.2%	1831.31
Daily Fibonacci 61.8%	1837.55
Daily Pivot Point S1	1815.87
Daily Pivot Point S2	1805.33
Daily Pivot Point S3	1789.45
Daily Pivot Point R1	1842.29
Daily Pivot Point R2	1858.17
Daily Pivot Point R3	1868.71

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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